Gold and silver prices fall on weak demand

New Delhi-India (Dec 11)  Gold prices suffered more losses by falling another Rs130 to trade at a fresh 10-month low of Rs28,450 per 10 grams on Saturday, mirroring a weak trend overseas amid slack demand from jewellers at the domestic market.

Silver too plunged by Rs600 to Rs41,250 per kg, hit hard by reduced offtake by industrial units and coin makers. Traders said sentiment soured after a subdued global trend where gold closed at the lowest level since February as the Federal Reserve gears up to raise rates. US equities at record levels meant the precious metals saw their demand as safe haven dwindle further.

Globally, gold fell 0.92% to $1,159.60 an ounce and silver by 1.06% to $16.82 an ounce in New York on Friday. In addition, a considerable drop in demand from jewellers and retailers at the domestic spot market in view of the prevailing cash crunch after the currency recall last month to flush out black money put pressure on the prices, they said.

In the national capital, gold of 99.9% and 99.5% purity fell further by Rs130 each to Rs28,450 and Rs28,300 per 10 grams, respectively. The precious metal had lost Rs130 on Friday. Sovereign, however, remained unchanged at Rs24,200 per piece of eight grams in limited deals.

Tracking gold, silver ready dived Rs600 to Rs41,250 per kg and weekly-based delivery traded lower by Rs240 at Rs41,220. Prices of silver coins plummeted by Rs1,000 to Rs72,000 for buying and Rs73,000 for selling of 100 pieces.

Source: TheMint